A Retainer and contingency agreement is a type of contract between an attorney and their potential client for an upcoming lawsuit. Upon either party may terminate this Agreement with [#] days notice. an hourly rate, flat rate, or contingency fee. As noted in the contingency fee section above, rates double the lawyers normal hourly rate are considered not unreasonable in a pure contingency fee context and a similar factor would likely be appropriate under a hybrid fee arrangement if the lawyer was being paid a base hourly rate substantially below his or her normal hourly rate. Nevertheless, the committee said: We believe that the lower risk to the lawyer will be offset by the lower premium in the event of a successful closing, as defined in the mandate agreement. If the lawyer does not meet any of the requirements of section 6147, he or she will make the agreement voidable at the choice of the plaintiff, and the lawyer will have the right to charge a reasonable fee thereafter. ( 6147 b) A percentage of contingency fees is typically 25% to 40% of the amount recovered for a client, but may be higher or lower depending on the case. LAW OFFICES OF JOHN P. LAWYER . Sample Contingency Fee and Retainer Agreement Forms Per Job. The selected attorney will most likely request to meet and discuss the next course of action. 0000008057 00000 n
Then, once an arbitrator or arbitrator has been appointed to hear the case, those arbitrators will be paid by the parties to the arbitration. Step 6 Document The Agreed Upon Retainer Status, Some legal procedures or cases may go on for a significant amount of time. tATUT. A contingency fee is an amount of money that is only paid if certain parameters are met. Violation of that rule renders the lien unenforceable. Contingent Fee AgreementsB&P 6147 Business and Professions Code Section 6147 governs contingent fee agreements. No legal advice is sought by browsing this site, and none is given. The above wording is merely an example and the figures would need to be adjusted for each particular case by taking into account the lawyers normal hourly rate, the clients ability to pay a base hourly rate, and each of the lawyers and clients willingness to accept risk. 0
In addition, looking up recent cases to see who is currently active in the industry is a great option. To offset the costs of operation while the Attorney represents the Client, a certain amount of money may be paid as a retainer. Depending on the type of arrangement made, a retainer payment may be requested to get working on the matter. Client agrees that Lawyer cannot promise or guarantee a particular result. . 8c!&uTC#yg
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)9h:6Lk3`vILb7m~.R Two of the largest arbitration tribunals are the American Arbitration Association (AAA) and JAMS. Step 8 Address The Topic Of Termination. 0000003209 00000 n
Download: Adobe PDF, MS Word (.docx) Sample #3. Client agrees not to settle the case without Lawyer's participation and consent. The agreement should state that the attorney will be retroactively paid his customary hourly rate should the client pull the plug on the case. If there is no one that comes to mind, checking online resources is the next best solution to find the ratings and reviews of qualified attorneys. After meeting with the qualified attorneys they will give their rates for the case based on its chance of winning in court and who is the Defendant. The Service Provider is an independent contractor and neither the Service Providers employees or contract personnel are, or shall be deemed, the Clients employees. 8_rv
d _ (Hall v. Orloff (1920) 49 Cal.App 745.) 0000003040 00000 n
is for information only andmustnot be relied on in any way. STATE AND FEDERAL LICENSES. Setting up a retainer agreement begins with a client seeking the services of someone else in exchange for payment. Copyright 2007-2022 Legaltree Publishing Inc. Legaltree was founded byMichael Dew, aVancouver lawyerand is owned and operated byLegaltree Publishing Inc. Waiver of liability: All content on www.legaltree.ca is for information only andmustnot be relied on in any way. Client). This is especially common in personal injury cases when the attorney is negotiating with an insurance company. A contingency fee is the attorneys compensation that is only owed if funds are received by the other party. An hourly rate fee coupled with a bonus fee based, in part, upon a favorable outcome to the client is not a contingent hybrid fee arrangement. ,c.%6n iN]y;uRc/o$a'S1MBFyj-M}TR]%x]QcA=!ZVfa(vKvg 5&u3yB/m00=./DFM[G"BfQ[xB>4P===Wjg`Pg4Q5AYGnOQ Sample #2. This, of course, is with the understanding that he or she must represent the Client successfully to obtain payment. 0000001349 00000 n
Required to pay a Retainer in the amount of $[#] to the Service Provider as an advance on future Services to be provided (Retainer). CONTINGENT FEE AGREEMENT - BASIC (Sample - Modify) I, [Client], retain [Attorney], Attorney at Law, to represent me for recovery of damages arising . If a dispute arises between us and you regarding our fees, the parties agree to resolve that dispute through the State Bar's Fee Dispute Arbitration Program. $[#] for the completion of the Services. Retainer to indicate the status of this option. Legally defining the hybrid arrangement is not that easy but, it can be done. In certain matters, we have taken part of our fee in equity or stock. WAIVER OF CONTRACTURAL RIGHT. 0000004080 00000 n
GOVERNING LAW. HVOA~|K"^4=F0w0w+W;;o=qaHKpfLrt A contingency fee is an amount of money that is only paid if certain parameters are met. @Jb PAYMENT. 2415 0 obj
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Said fees are subject to increase via attorney motions and court orders. Contact a qualified personal injury attorney to make sure your rights are protected. Download: Adobe PDF. Download: Adobe PDF. Limiting the maximum compensation to the lesser of the two will to the benefit of the plaintiff, but depending on the risks involved may not be acceptable to the lawyer. Client agrees not to speak to others or consult other lawyers about the case. However, these samples do not identify provisions that would violate California's Rules of Professional Conduct (CRPC) and the law. At first glance, the client may perceive this hybrid structure as a better option than a traditional hourly agreement, as the reduced rate should theoretically lead to a reduction in expenses and the law firm should theoretically be motivated to maximize recovery to increase its emergency payment. Contingency fee arrangements are popular in practice areas like personal injury cases where the client may not have enough money to hire a lawyer upfront. The second and last signature area can only be satisfied with by the Attorney or a representative of the Law Firm entering this agreement. 0000205298 00000 n
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2022 Electronic Forms LLC. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that partys right to subsequently enforce and compel strict compliance with every provision of this Agreement. To pick the simplest illustration, a lawyer who settles 100 cases for $1,000 each on the sliding scale will rake in a hefty $50,000 in fees, compared to only $33,333 earned by a lawyer who uses the traditional 33-1/3% formula for the same cases. Therefore, the Ethics Committee of the State Bar Association has given the green light to hybrid fee agreements, provided that the total amount of fees is reasonable and complies with all applicable judicial regulations. Contingency Fee. Several statements with the wording necessary to apply such a percentage payment have been supplied for your use. Popular for personal injury but can be for any case where the client has . 0000008662 00000 n
Commission. No legal advice is sought by browsing this site, and none is given. TERM. Created byFindLaw's team of legal writers and editors The Service Provider shall be solely responsible for the benefits, unemployment compensation and workers compensation provided to their employees. Example: A client hires an attorney and pays a retainer to get started on a case. The process of creating a contingency agreement depends on the attorney and the legal case presented. In practical terms, such an acknowledgement can be inserted into the agreement along with a place for the client to initial that he read and understood his right to consult with another lawyer and, nonetheless, has agreed to the charging lien. 788, 799 We reject the argument that a retainer agreement violates Rule 4200 solely because it provides that an attorney may receive both a contingent fee and a statutory fee) In such event, the attorney may be entitled to both the contract percentage fee and the fee awarded by the court. The hybrid has several advantages. $1g1s i"_hRxq~~qY!Wx59a;:{;6B,K(}-oj&eK{dXO?0`G` In Arnall, supra, the court found that the term contingency fee contract is ordinarily understood to encompass any arrangement that ties the attorneys fee to successful performance, including those which incorporate a non-contingent fee based upon the rate of payment. Business aspects of lawyer-client fee agreements, Hybrid fee agreements between lawyers and plaintiffs, Bonus billing by lawyer must be expressly agreed to by client, Conclusion and summary of benefits of hybrid fee agreements between lawyer and client . . A recurring payment used for an ongoing relationship between the client and the consultant. Step 3 Set A Specific Date To Apply To This Paperwork, It will be important to attach a specific Date for this agreement. This is usually between $200 and $500 and is generally considered a deposit relative to the total cost incurred by the court during the proceedings. (Arnall v. Superior Court (2010) 190 Cal.App.4th 360, 369.) 1. [NAME AND ADDRESS OF LAW FIRM]. It contains the 1997) 3 Cal. HVMO@W1^{U! 12. The following wording may be appropriate for a hybrid fee agreement in which the lawyers rate when paid under an hourly rate fee agreement is $300 / hour: It is not certain at the time of signing this agreement what amount if any will be recovered on account of the Clients Case, or how much legal work will be required to achieve full or partial recovery. Client agrees that Lawyer cannot promise or guarantee a particular result. Furnish the name of this Client on the blank line presented in the first article (labeled I. 9. All Medical Injury Compensation Reform Act ("MICRA") contingency-fee agreements must comply with Business and Professions Code section 6146. . Learn more about FindLaws newsletters, including our terms of use and privacy policy. A retainer agreement is a contract between a client and a professional who requires an upfront payment applied to future work. Such a provision may encourage a client to consider more fully the attorneys interest when deciding whether to resolve or dismiss the case. %gA`A`A`A`A`ao z&M7eoNST8NST8NST8NST8(Q6G1f1x1x1x1x7`3vh48:4
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All links are provided for convenience only and no sites linked to are endorsed. H\@. Each of us wants the other to achieve a positive and meaningful result. ATLANTA, GEORGIA 30000-0000 . (1974) 11 Cal.3d 558, 563; see also Tarver v. State Bar of Cal. agreement (hereinafter "the Agreement") was the subject of the underlying action. Sample Contingency Fee and Retainer Agreement Forms . _*UU
He has written and lectured extensively about UM/UIM Arbitrations and is a member of CAALA and the San Fernando Valley Bar Association. 148 0 obj
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You and your lawyer should agree on what you will pay and which services will be provided. Indeed, the Firm and the Client specifically anticipate that after full or partial recovery is made on account of the Case the Firm will issue Further Accounts seeking additional payment for work previously billed and paid as Minimum Fees. Firms, Sample Retainer and Contingency Agreement for an Injury Case. endstream
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Withholding FICA, Medicare, Social Security, or any other Federal or State withholding taxes from the Service Providers payments to employees or personnel or make payments on behalf of the Service Provider; b.) 3. Download: Adobe PDF, MS Word (.docx), OpenDocument, Step 1 Acquire Your Copy Of The Contingency Agreement Through This Site. )*6'-s;m7\k }>c{ Therefore, we do not accept contingency fee cases when we believe the matter will be so difficult that it will affect our ability to represent other clients or put too much strain on our resources, or if the potential return on investment of time and money does not justify the risk. Service Provider shall release, defend, indemnify, and hold harmless Client and its officers, agents, and employees from all suits, actions, or claims of any character, name, or description. Moreover, it is not uncommon in the business context for litigation to be used as a bargaining tool for the next deal; i.e., a lease extension, a more favorable new contract or a million other legitimate reasons. INDEPENDENT CONTRACTOR STATUS. 2. Subject to some exceptions, the negotiation of a fee agreement is an arms-length transaction. (See Ramirez v. Strurdevant (1994) 21 Cal.App.4th 904, 913, citing Seltzer v. Robinson (1962) 57 Cal.2d 213, 217.) 7. endstream
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All fees for service contracts must contain the following provisions: A statement of the rate to be charged, whether hourly, flat fee, statutory fee, costs, or any other charges that can reasonably be anticipated. Contingency Fee Example An attorney may accept a case from a client in return for a percentage (%) of the total proceeds ($) received by the other party. J| HA W x%.r3vh2"Q 3r/"g9F\ iN;/kJ9X+VHhTN#|Yl VB6ZpE]viVWo%U-P/)y;rWo3.RP@hqWq:>h^ ^!#v#}sN vdWvY)] $d(pJ%?OjoPR1/KoF61[iV;3a3L*j>lV@TuT"N=q#10 (1974) 11 Cal.3d 558, 563; see, also, Tarver v. State Bar of Cal. The Service Provider represents and warrants that all employees and personnel associated shall comply with federal, state, and local laws requiring any required licenses, permits, and certificates necessary to perform the Services under this Agreement. The attorney will have to judge the hours needed on the case, the chance of winning, and the total amount that can be feasibly collected before agreeing to work with the client. THE PARTIES. 2. However, it does not invalidate the underlying fee agreement or preclude the attorney from otherwise recovering the agreed-upon contractual fee. Attorney fees are set by statute: If settlement or judgment is reached, our attorneys' fees shall be deducted from the gross settlement, arbitration, mediation, judgment or otherwise; 33.33% provided for in California Business and Professions Code Section 6146. A monthly retainer, also known as pay for access, is when a client pays a repeated amount to a service provider in exchange for access to their services. 8. CONFIDENTIALITY. $'$CFE"=*0"hhLUP)y;vwq,T\vqt?PezOD Qd(ygH*;'D v;dT8 Barry P. Goldberg is the principal of Barry P. Goldberg, A Professional Law Corporation, located in Woodland Hills. Step 2 Identify The Attorney Or Law Firm Accepting This Agreement. (2) A statement as to how disbursements and costs incurred in connection with the prosecution or settlement of the claim will affect the contingency fee and the clients recovery. . endstream
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Responsible for all expenses. Therefore, the client may unilaterally decide to settle or dismiss the suit regardless of how the attorney feels about it and irrespective of whether it would destroy a valuable contingent fee. For larger matters, however, the standard 33-1/3/% fee earns more money for the lawyer. 0000001682 00000 n
A contingency fee allows a client to only make a payment for the services if the contingency is met. }`^*k>2:-lC=yJ3b~X^s2]k[l%/yJ-`Y9QuE9|,{JKzX*lVca"6Xf+tLR5|7+UY59;( This Agreement supersedes any prior agreements, promises, conditions, or understandings between the Client and Service Provider. Depending on the nature of the case, the amount of the dispute, and the terms of an arbitration agreement, these arbitration bodies will charge one or both parties a filing fee to initiate the arbitration. Only the service provider and the client are legally required to sign the document. 11. 0000001947 00000 n
Service Provider shall be paid, in accordance with section IV: (check one). (3) A statement as to what extent, if any, the client could be required to pay any compensation to the attorney for related matters that arise out of their relationship not covered by their contingency fee contract. endstream
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The attorney, instead of being paid by the hour, will receive a portion of the total amount of funds collected from the other party after a settlement or judgment. Legal Matter, will seek a reasonably adequate description of the case the Attorney handle. The Agreement, executed by Gerber, Harmon, and the Bryans on August 20, 2009, provided for total contingency attorneys' fees of 40 percent of any gross recovery greater than $100,000. There are two types of retainer agreements: A one-time payment used as an advance payment for future services. The type of contingency fee agreement requires us to carefully select contingency fee cases. In order for the hybrid relationship to work for the attorney, the attorney must be able to protect himself against the client eliminating the benefit of the upside contingency for his own business reasons. CONTINGENT FEE CONTRACT (Addendum to Retainer Agreement) DATE: _____ . No. 17. It further provided that the fees earned on any recovery up to $1
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A hybrid is a contingency fee agreement with all its requirements It weighs on the reality of thinking that if a lawyer sits down to negotiate with a potential client remotely, he must recommend in writing to the client to consult another lawyer before accepting such a privilege. 0000046097 00000 n
After reviewing the offers and each strategy it is time to choose the attorney that is right for the case. What to Expect Regarding Fees and Billing. }AF`^={t.k:vhl5)65%pfPkjjmupW.R~2z&gy&3H@B[
dMd{u5p=h X7Y>DL)o:9WZsIlS@jxZ]0)[xIKlY7i;Hb7q0UN_B/qBl
/YaZ$_1}ZGz2lO)$*8HPL q;3MsC|R}03C(B9>Y[G^j^dNeHUVg!,eXL|kG*"|L8:#qx"-RA}6(? 9U! HW]sH}W2U?2Tblh2Xb%n 19N&!Ij"_:_Tg/O^MI/KNl3fm|_D%-lv|%d>bti&?hlbmQG7*R4zSECn#ksMFHC_wgRRKzSVm2/iL(&/1w+cw*nZR_iUUM The pages above explain how a lawyer and client may agree to a hybrid fee agreement under which the lawyer is paid a low hourly fee as the claim proceeds and is then paid a bonus if there is good recovery on the clients claim. U@\7B].S!*-n:ZoU.);P8~{}q5br0F` vtyr#vDz(E4n!_iU;sI! 0000003842 00000 n
For a simple breach of contract, our success fee percentages can vary from 20-25% to 33 1/3% of the refund. The only cost will be if the attorney wins the case and funds are received. 22. An attorney may accept a case from a client in return for a percentage (%) of the total proceeds ($) received by the other party. It requires attorneys to have a written agreement whenever it is reasonably foreseeable that the client's total expense, including attorneys' fees, will exceed $1,000. Since many business cases can involve the allocation of attorneys` fees, how these allowances are handled is crucial. This will give a point of reference and solidify the agreements timeline. SEVERABILITY. hbbd``b`$AZ YEM $2 H '89F~?|0 q
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That section requires a written agreement in all cases where it is reasonably foreseeable that the total fee will exceed $1,000. This Agreement shall be governed under the laws in the State of [STATE]. The percentage recovery will be calculated [BEFORE/AFTER] outstanding medical bills, expenses and costs of suit are deducted. A contingency agreement is especially popular with legal matters related to personal injury, medical malpractice, property damage, or any case where damages can be proven. 0000001856 00000 n
In contingency fee agreements, Section 6147 of the Business and Professions Code contains the same requirements as non-contingency fee agreements (discussed above) for a written fee agreement and a duplicate copy of the executed agreement being provided to the client. 2397 0 obj
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Thus, if the relationship ends before the contingency representation is completed, any unearned portion of the flat fee will be subject to refund. = pQaw/g'r
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~%z1S~^^:#FyX&Mj/,ZQalsi+OSF[*+|vX Therefore, it is recommended that the fee agreement set forth specifically the attorneys regular customary hourly rate for cases of like complexity and that such rate is being reduced in favor of a contingency. Thus, use the blank line in V. 6. Meeting with a lawyer can help you understand your options and how to best protect your rights. 0000009292 00000 n
6. Thus, if a retainer fee will be paid as per this agreement, you must mark the first checkbox in this section (III. Contact us. Even the most well-meaning lawyers are motivated, at least unconsciously, by these incentives. Name If the Attorney has devoted a great amount of time to the Clients case this could have severe repercussions on his or her ability to continue operations. A contingency fee is mostly used when hiring an attorney to represent a client in a civil case. Lawyer There SHALL NOT be a contingency-fee arrangement as part of this Agreement. 0000001225 00000 n
5. Client agrees to pay Lawyer's fee for professional services as follows: ______ percent of any settlement or recovery, and _______ if the case is appealed. A written fee agreement is not required State Bar Ct.Rptr. Copyright Sample: Retainer Agreement. Where the contract is silent on the handling of attorney fee awards, the award probably will go directly to the client and would not be considered a recovery out of which the attorney thought he would be receiving a percentage. 0000007385 00000 n
With a few exceptions, negotiating a fee agreement is a transaction on market terms. (See Ramirez v. Strurdevant (1994) 21 Cal.App.4th 904, 913, citing Seltzer v. Robinson (1962) 57 Cal.2d 213, 217.) This is often seen in the legal and consulting industries. 0000001197 00000 n
Service Provider agrees to provide the following Services: [SERVICES]. I, ____________________, acknowledge that I have read this agreement fully, understand its terms., and agree to them. 1. The profitability of a law firm is no different. In summary, a mutually beneficial agreement may be reached if the lawyer strictly adheres to the rules of professional conduct applicable to the collection of privileges and contingency fees. A retainer can be set up as a one-time payment or for a recurring period. ?qnEAB-FSyL^V5JL:
Ud. A contingency fee agreement is in line with the interests of the law firm and the client, as the main motivation of both parties is to obtain maximum recovery as soon as possible. startxref
INDEMNIFICATION. Copyright 2023, Thomson Reuters. 2005-15 Fee Agreements: Contingent Fees Paid in Installments, 2005-69 Fee Agreements: Dividing Court-Awarded Fees with Nonlawyer, and If the claim is filed in court, the court will charge a filing fee to the plaintiff or plaintiffs who file the claim. There are many reasons why the percentage of contingency fees can vary. Contingency Fee Agreement - For legal work that is paid only if a judgment is received by the client. The sample hourly and contingent fee agreements published by the State Bar of California can be used as guides for your own agreement. a lease extension, a new cheaper contract or a million other legitimate reasons. EMPLOYEES COMPENSATION. For more difficult and risky cases, our percentage of contingency fees can reach 45% of the recovery. This is a sum released to the Attorney in advance and will be deducted from the final (contingency) payment. Hb```f``2A@l(T0K@{WZ`6Dp~c``8@! The second article designated as II. We owe it to our clients and ourselves to analyze very carefully each potential case of contingency fees before agreeing to proceed on this basis. When the terms of the retainer agreement are agreed upon by all parties, its time to sign the agreement. %%EOF
If the Attorney reaches a settlement with the opposing party prior to any lawsuit then record the percentage of the settlement earnings that shall be paid to the Attorney on the blank space attached to the percent sign.If the Attorney will earn a percentage Of Any And All Sums Recovered resulting from a trial or the settlement of a lawsuit in progress (post-filing) then record the percentage earned on the blank space attached to the second statement. A hybrid is a contingency fee agreement with all its requirements, There is a recent case where the court determined, as a matter of first impression, that a hybrid fee agreement was a contingency fee agreement subject to all the statutory requirements. trailer
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This agreement represents the full agreement between Client and Lawyer. A hybrid is a contingency fee agreement with all its requirements. [TERMS & CONDS]. If you win the case, the lawyers fee comes out of the money awarded to you. %PDF-1.3
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Step 5 Discuss The Concerned Legal Matter. Step 9 The Attorney And Contingency Client Must Combine Signatures, This paperwork can only hold the entities we have identified earlier obligated to its terms if both provide a valid signature after reading and approving the articles it contains. 12. In such circumstances, we may represent the client on a traditional hourly fee basis, a hybrid basis of contingency fees and hourly fees or with other AFAs. Standard (Average) Contingency Fee H\@}&?-np1?3IbzOOXq \o7B}44cc^&C:u}1B59wx):?uoa^(m~wtNfam:}_mmH_i.m&ze,Rn;+ya 2"1gdi09b#sD3pF:#g3p (See Los Angeles Bar Assn Form.Opn. The Service Provider is: (check one). All remaining sections and provisions shall be deemed legally binding unless a court rules that any such provision or section is invalid or unenforceable. <]>>
A charging lien in this circumstance is considered an adverse interest requiring compliance with that rule. 0000000766 00000 n
In consideration for the Services provided, the Service Provider is to be paid in the following manner: (check all that apply). 0000000671 00000 n
Section 6147 provides, in pertinent part: (a) an attorney who contracts to represent a client on a contingency fee basis shall, at the time the contract is entered into, provide a duplicate copy of the contract, signed by both the attorney and the client, or the clients guardian or representative, to the plaintiff, or to the clients guardian or representative. As noted in the contingency fee section above, rates double the lawyer's normal hourly rate are considered not unreasonable in a pure contingency fee context and a similar factor would likely be appropriate under a hybrid fee arrangement if the lawyer was being paid a base hourly rate substantially below his or her normal hourly rate. Below is a sample of how that agreement might look. Accordingly, the Service Provider will not disclose or use, either during or after the term of this Agreement, any proprietary or confidential information of the Client without the Clients prior written permission except to the extent necessary to perform the Services on the Clients behalf. The blank lines placed below this phrase expect the legal name and business address of the Law Firm or the Attorney entering this contract.
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